A recent global survey by British asset management company Schroders found that most investors have rather unrealistic expectations. U.S. investors have the most inflated expectations of anyone in the world. Millennials (defined as ages 18-35) are the worst offenders.
How do Americans stack up? The average European investor expects an annual ROR of 7.9%. That figure jumps to 9.7% for Asian investors. U.S. investors expect 10.2% with Millennials looking for a whopping 11.1%.
Of similar interest is recommended vs. typical holding period. Advisers on average recommend a holding period of just over 5 years for equities. Meanwhile U.S. and global investors hang on to their investments for an average that is barely more than three years. Almost 1/3 invest for less than a year. The trend is most pronounced among Millennials who tend to hold their investments for 18 months less than investors ages 36 and over.